Wednesday, June 20, 2012

False or true break down? (2012-06-20 VIX analysis)
















Above is the daily chart of volatility index (VIX). Given the movement in MACD and RSI, the index looks like that it would surge and go back within the diverging flag, which means that the volatility would increase. But still we would need the index to close within the flag to confirm that the break down is a false one.

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